Ginnie Mae will allow government-backed loans for hospitals to be included in its securities beginning August 1. Starting on that date, hospital loans insured by the Federal Housing Administration can be included in Ginnie multifamily real estate mortgage investment conduit transactions. These loans must be 100% secured by real property and will apply to all REMIC transactions beginning in August. Since the financial crisis, the government has been attempting to expanding asset classes it insures outside of the traditional zones. For instance, recent legislation setting up a regulated market for covered bonds would include student loans and auto loans, when in Europe, covered bonds are restricted to municipal loans and triple-A rated mortgages. "The inclusion of MBS backed by acute care hospital loans in REMIC transactions will ultimately increase the liquidity of the securities," said Ginnie Mae President Ted Tozer. "This will, in turn, substantially lower the financing costs for hospitals." Write to Jon Prior. Follow him on Twitter @JonAPrior.